Gemini Launches Interest-Earning Program for Cryptocurrencies

Jafrin  |  Feb 3, 2021

Crypto exchange Gemini has launched an interest-earning program called Gemini Earn for customers in the U.S. Gemini Earn will support upto 26 cryptocurrency assets including DeFi coins such as Uniswap and Aave. The program will be initially available for selected Gemini customers. Its full-scale roll-out is scheduled for early February 2021.

Gemini's Earn Program APY to Vary Based on Cryptocurrencies

The annual percentage yield (APY) for the Gemini Earn program will vary with the type of cryptocurrency. The highest yield will only be available for Filecoin at 7.4%. For the rest of the supported cryptocurrencies, the interest rate will vary from 1.54% to 5.83%.

Popular cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) will each yield 3.05%. This still comes as a high yield, in comparison to the average national savings account rate of 0.05%.

In the announcement release, Tyler Winklevoss, CEO of Gemini, said:

"Today's investors know that a smart, diverse portfolio includes crypto — it's an investment in their future selves. We designed a program that allows our customers the ability to generate a real return on their crypto holdings without having to sell one of the best performing asset classes of the decade."

Noah Perlman, chief operating officer at Gemini, said:

"Gemini allows our customers the ability to invest for the long term while also easily putting their money to work and reward themselves today with high-yield products like Gemini Earn."

Gemini Intends to Normalize the Use of Cryptocurrency

There will be no minimum balance required to get started on the Gemini Earn program. Besides, there will also be no fees required to transfer or redeem from the program. Users can redeem their cryptocurrency holdings at any time.

The launch of Gemini Earn comes just shortly after the exchange announced the launch of Gemini Credit Card, where users are rewarded with cryptocurrencies for their purchases. Both offerings intend to mainstream and normalize the use of cryptocurrency through traditional financial products such as interest-earning platforms and credit cards.

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